The United States and Canada have moved closer to a trade agreement that would avert steep new tariffs, with the Trump administration postponing a planned 50 percent duty on about $20 billion worth of Canadian imports.

President Trump announced the delay late Wednesday after intensive talks, pushing the deadline to 12:01 a.m. Saturday. Canadian Prime Minister Mark Carney confirmed that substantial progress had been made toward resolving outstanding trade issues, though additional work remains.

The postponement follows weeks of negotiations aimed at addressing U.S. concerns over trade imbalances, dairy access, and other sectors. Sources familiar with the discussions indicated that the emerging deal could reduce tariffs on Canadian-built automobiles to 15 percent from 25 percent and halve rates on steel and aluminum.

Trump described the potential agreement as very fair to both sides and predicted benefits for American farmers and manufacturers. Carney stated that the talks have focused on delivering greater certainty and real benefits for Canadian businesses, workers, farmers, and families while Canada continues efforts to strengthen its own economy.

The developments come amid broader tensions in North American trade, including the ongoing review of the United States-Mexico-Canada Agreement. The two nations have faced reciprocal tariff threats and disputes over the past year.

Negotiators are expected to continue discussions in the coming days to finalize terms before the new deadline. Provincial premiers in Canada have been briefed on the status, with some expressing support for the direction of the talks.